WESTERN UNION CO (WU) Stock Fundamental Analysis
NYSE:WU - New York Stock Exchange, Inc. - US9598021098 - Common Stock - Currency: USD
Overall WU gets a fundamental rating of 6 out of 10. We evaluated WU against 101 industry peers in the Financial Services industry. While WU has a great profitability rating, there are some minor concerns on its financial health. WU has a bad growth rate and is valued cheaply. WU also has an excellent dividend rating. These ratings would make WU suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
WU had positive earnings in the past year.
In the past year WU had a positive cash flow from operations.
Each year in the past 5 years WU has been profitable.
Each year in the past 5 years WU had a positive operating cash flow.
1.2 Ratios
WU's Return On Assets of 11.16% is amongst the best of the industry. WU outperforms 93.07% of its industry peers.
With an excellent Return On Equity value of 96.42%, WU belongs to the best of the industry, outperforming 99.01% of the companies in the same industry.
WU has a better Return On Invested Capital (8.37%) than 79.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WU is below the industry average of 11.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 96.42% | ||
| ROIC | 8.37% |
ROA(3y)9.84%
ROA(5y)9.3%
ROE(3y)139.23%
ROE(5y)208.46%
ROIC(3y)9.8%
ROIC(5y)10.63%
1.3 Margins
WU has a better Profit Margin (22.19%) than 76.24% of its industry peers.
In the last couple of years the Profit Margin of WU has grown nicely.
WU has a better Operating Margin (18.22%) than 61.39% of its industry peers.
WU's Operating Margin has improved in the last couple of years.
WU has a Gross Margin of 38.23%. This is comparable to the rest of the industry: WU outperforms 57.43% of its industry peers.
In the last couple of years the Gross Margin of WU has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.22% | ||
| PM (TTM) | 22.19% | ||
| GM | 38.23% |
OM growth 3Y-6.29%
OM growth 5Y3.95%
PM growth 3Y11.78%
PM growth 5Y2.1%
GM growth 3Y-3.75%
GM growth 5Y-1.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WU is destroying value.
Compared to 1 year ago, WU has less shares outstanding
The number of shares outstanding for WU has been reduced compared to 5 years ago.
The debt/assets ratio for WU is higher compared to a year ago.
2.2 Solvency
WU has an Altman-Z score of 1.20. This is a bad value and indicates that WU is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.20, WU is doing good in the industry, outperforming 64.36% of the companies in the same industry.
The Debt to FCF ratio of WU is 10.23, which is on the high side as it means it would take WU, 10.23 years of fcf income to pay off all of its debts.
WU has a Debt to FCF ratio (10.23) which is comparable to the rest of the industry.
WU has a Debt/Equity ratio of 3.04. This is a high value indicating a heavy dependency on external financing.
WU has a Debt to Equity ratio of 3.04. This is in the lower half of the industry: WU underperforms 74.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | 10.23 | ||
| Altman-Z | 1.2 |
ROIC/WACC0.8
WACC10.44%
2.3 Liquidity
WU has a Current Ratio of 2.17. This indicates that WU is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of WU (2.17) is better than 77.23% of its industry peers.
A Quick Ratio of 2.17 indicates that WU has no problem at all paying its short term obligations.
WU's Quick ratio of 2.17 is fine compared to the rest of the industry. WU outperforms 78.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 |
3. Growth
3.1 Past
WU shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.84%.
WU shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.23% yearly.
Looking at the last year, WU shows a decrease in Revenue. The Revenue has decreased by -3.38% in the last year.
Measured over the past years, WU shows a decrease in Revenue. The Revenue has been decreasing by -4.47% on average per year.
EPS 1Y (TTM)-2.84%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%-8.89%
Revenue 1Y (TTM)-3.38%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-6.24%
3.2 Future
Based on estimates for the next years, WU will show a small growth in Earnings Per Share. The EPS will grow by 3.24% on average per year.
The Revenue is expected to grow by 1.73% on average over the next years.
EPS Next Y4.79%
EPS Next 2Y5.06%
EPS Next 3Y4.34%
EPS Next 5Y3.24%
Revenue Next Year-0.7%
Revenue Next 2Y0.49%
Revenue Next 3Y0.85%
Revenue Next 5Y1.73%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.92, the valuation of WU can be described as very cheap.
89.11% of the companies in the same industry are more expensive than WU, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WU to the average of the S&P500 Index (28.64), we can say WU is valued rather cheaply.
The Price/Forward Earnings ratio is 5.24, which indicates a rather cheap valuation of WU.
WU's Price/Forward Earnings ratio is rather cheap when compared to the industry. WU is cheaper than 90.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WU to the average of the S&P500 Index (21.44), we can say WU is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | 5.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WU is valued cheaper than 92.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, WU is valued a bit cheaper than the industry average as 72.28% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.79 | ||
| EV/EBITDA | 5.13 |
4.3 Compensation for Growth
WU's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
WU has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)25.73
EPS Next 2Y5.06%
EPS Next 3Y4.34%
5. Dividend
5.1 Amount
WU has a Yearly Dividend Yield of 9.40%, which is a nice return.
Compared to an average industry Dividend Yield of 4.93, WU pays a better dividend. On top of this WU pays more dividend than 96.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, WU pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.4% |
5.2 History
The dividend of WU has a limited annual growth rate of 3.31%.
WU has paid a dividend for at least 10 years, which is a reliable track record.
WU has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.31%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
34.41% of the earnings are spent on dividend by WU. This is a low number and sustainable payout ratio.
The dividend of WU is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.41%
EPS Next 2Y5.06%
EPS Next 3Y4.34%
NYSE:WU (4/24/2025, 3:19:07 PM)
10.125
+0.02 (+0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners94.15%
Inst Owner Change-0.72%
Ins Owners0.22%
Ins Owner Change7.33%
Market Cap3.39B
Analysts48.15
Price Target11.85 (17.04%)
Short Float %7.25%
Short Ratio4.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.4% |
Yearly Dividend0.93
Dividend Growth(5Y)3.31%
DP34.41%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.47%
Min EPS beat(2)-6.98%
Max EPS beat(2)2.03%
EPS beat(4)2
Avg EPS beat(4)-0.59%
Min EPS beat(4)-6.98%
Max EPS beat(4)7.01%
EPS beat(8)5
Avg EPS beat(8)6.71%
EPS beat(12)7
Avg EPS beat(12)6.26%
EPS beat(16)9
Avg EPS beat(16)5.94%
Revenue beat(2)1
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-2.26%
Max Revenue beat(2)0.21%
Revenue beat(4)2
Avg Revenue beat(4)-0.88%
Min Revenue beat(4)-2.34%
Max Revenue beat(4)0.88%
Revenue beat(8)5
Avg Revenue beat(8)1%
Revenue beat(12)5
Avg Revenue beat(12)-0.19%
Revenue beat(16)5
Avg Revenue beat(16)-0.77%
PT rev (1m)-1.95%
PT rev (3m)-7.08%
EPS NQ rev (1m)-3.04%
EPS NQ rev (3m)-7.16%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-1.57%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | 5.24 | ||
| P/S | 0.81 | ||
| P/FCF | 11.79 | ||
| P/OCF | 8.34 | ||
| P/B | 3.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.13 |
EPS(TTM)1.71
EY16.89%
EPS(NY)1.93
Fwd EY19.08%
FCF(TTM)0.86
FCFY8.48%
OCF(TTM)1.21
OCFY11.98%
SpS12.57
BVpS2.89
TBVpS-4.2
PEG (NY)1.24
PEG (5Y)25.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.16% | ||
| ROE | 96.42% | ||
| ROCE | 9.98% | ||
| ROIC | 8.37% | ||
| ROICexc | 10.36% | ||
| ROICexgc | N/A | ||
| OM | 18.22% | ||
| PM (TTM) | 22.19% | ||
| GM | 38.23% | ||
| FCFM | 6.83% |
ROA(3y)9.84%
ROA(5y)9.3%
ROE(3y)139.23%
ROE(5y)208.46%
ROIC(3y)9.8%
ROIC(5y)10.63%
ROICexc(3y)12.09%
ROICexc(5y)13.01%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)12.02%
ROCE(5y)13.02%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-11.63%
ROICexc growth 5Y-2.69%
OM growth 3Y-6.29%
OM growth 5Y3.95%
PM growth 3Y11.78%
PM growth 5Y2.1%
GM growth 3Y-3.75%
GM growth 5Y-1.35%
F-Score5
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.04 | ||
| Debt/FCF | 10.23 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 66.33% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 6.73 | ||
| Cash Conversion | 42.94% | ||
| Profit Quality | 30.78% | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 2.17 | ||
| Altman-Z | 1.2 |
F-Score5
WACC10.44%
ROIC/WACC0.8
Cap/Depr(3y)67.05%
Cap/Depr(5y)58.3%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.47%
Profit Quality(3y)62.33%
Profit Quality(5y)81.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.84%
EPS 3Y-7.2%
EPS 5Y0.23%
EPS Q2Q%-8.89%
EPS Next Y4.79%
EPS Next 2Y5.06%
EPS Next 3Y4.34%
EPS Next 5Y3.24%
Revenue 1Y (TTM)-3.38%
Revenue growth 3Y-6.02%
Revenue growth 5Y-4.47%
Sales Q2Q%-6.24%
Revenue Next Year-0.7%
Revenue Next 2Y0.49%
Revenue Next 3Y0.85%
Revenue Next 5Y1.73%
EBIT growth 1Y-6.15%
EBIT growth 3Y-11.93%
EBIT growth 5Y-0.7%
EBIT Next Year25.62%
EBIT Next 3Y8.99%
EBIT Next 5Y7.4%
FCF growth 1Y-57.2%
FCF growth 3Y-32.58%
FCF growth 5Y-19.17%
OCF growth 1Y-48.12%
OCF growth 3Y-27.02%
OCF growth 5Y-14.98%